Guiding your life’s biggest financial moments

Personal Finance

Keep moving costs under control

Young people tend to move frequently when they start their careers and change jobs, and the pandemic has not reversed this trend. Gen Z (aged 18 to 24) were the group most likely to have moved during the pandemic, followed by millennials (aged 25 to 40), according to financial site Bankrate.

I am no exception. Since graduating from college 14 years ago, I have lived in nine homes in four cities. If I’ve learned anything, it’s that moving is almost always more expensive and takes longer than expected.

Expenses vary depending on how far you walk, how much stuff you carry, and how much work you do yourself. The average cost for movers to haul about 7,500 pounds from a two- to three-bedroom home is $ 1,250 for a local move or $ 4,890 for a 1,000-mile move, according to Moving.com.

Reduce expenses. As soon as you know you’ll be moving, make a plan. “The first thing you can do to cut costs is start early,” says Kevin Kleckner of Penske, who rents moving trucks. This gives you time to compare prices between services, such as truck rentals or hired employees (get quotes from sites like Moving.com and MovingHelp.com). And to make sure you get the services you need, book them well in advance, especially if you are moving during peak season from Memorial Day weekend to Labor Day weekend, explains. Andrea Batchelor of U-Haul International. Prices are generally lower if you move in the quieter months and avoid weekends. Getting a head start also gives you time to purge your belongings, reducing the amount to haul.

When budgeting, be sure to factor in packing supplies, such as duct tape, bubble wrap, and boxes. If you hire movers, see if they charge extra for specific services, such as transporting certain bulky items or assembling and disassembling furniture.

Homeowner and tenant insurance policies often do not cover your property while it is in transit. Moving companies must include free coverage of 60 cents per pound, per item, for a move across state lines. For additional insurance protection provided by the mover who reimburses you for the current value of damaged items, you will pay approximately 1% to 2% of the total value of your property. If you’re carrying multiple high-value items or packed the boxes yourself, which Mover Protection may not cover, consider liability insurance, which costs around $ 1.25 a pound, according to the financial site. ValuePenguin.

If your move involves a multi-day trip, factor in the costs of fuel, accommodation, meals, and tolls. Have money on hand to tip your movers – around $ 20 to $ 50 per person, depending on the length and complexity of the move.

Involve your employer. If you are moving for a job, ask your employer if they will cover at least some of the costs. Housing and relocation allowances are on the decline, but 34% of employers are offering a lump sum relocation payment, according to the Society for Human Resource Management. In some cases, managers who offer job postings are given the green light to provide such benefits, but the job candidate must request them, Batchelor explains.

Due to tax law changes in 2017, most people (except active duty military personnel) can no longer deduct unreimbursed employment-related moving expenses on their federal income tax return, and employer relocation benefits are treated as taxable income.

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